Consumers Seek Incentives to Expand Relationships With Their Primary Bank.

When it comes to issuing credit cards, home mortgages and auto loans, banks could use a little financial advice of their own according to a survey of 500 banking Americans. The study, conducted online in 48 hours by professional research firm InsightExpress, reveals that nearly two-thirds of Americans state they would prefer to have all of their financial needs met by one institution.

The study also found few Americans actually conduct business with their primary bank when it comes to acquiring a loan as 78% obtained their auto loan from a lender other than their primary bank while 72% secured their mortgage from an institution other than their primary bank. Additionally, 77% use a credit card from a financial institution other than their primary bank.

Beyond knowing what products are available, Americans point to a lack of incentives as a key reason their primary bank is unable to win more of their business. Respondents said they would be willing to conduct additional business with their primary bank if the following inducements were offered:

Inducements to Keep Customers Americans Agreeing
Free checking 46%

A higher interest rate on checking/savings account(s) in exchange for taking a loan with my primary bank 43%

Reduced Bank/ATM Fees 41%

Free online banking 40%

Consolidated monthly statements for all accounts 30%

A lower rate on my loan in exchange for maintaining a higher minimum balance in my checking/savings account(s) 29%
The opportunity to earn rewards points towards merchandise or travel 28%

“Now that consumers have revealed this tremendous opportunity, banking and marketing professionals need to use research to quickly uncover incentives that will convince their customers to use their lending services,” said Lee Smith, president and COO of InsightExpress. “Americans clearly prefer to conduct business with their primary bank, but rarely are customers given the incentive to do so.”

For more information http://www.insightexpress.com